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Which of the following statements is NOT true about a fixed - period system? Part 2 A . The advantage of the fixed - period
Which of the following statements is NOT true about a fixedperiod system?
Part
A
The advantage of the fixedperiod system is that there is no physical count of inventory items after an item is withdrawn.
B
A fixedperiod system is also called "continuous review."
C
The disadvantage of the fixedperiod system is that because there is no tally of inventory during the review period, there is the possibility of a stockout during this time.
D
A fixedperiod system is appropriate when vendors make routine visits to customers to take fresh orders or when purchasers want to combine orders to save ordering and transportation costs.
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